EQECAT releases U.S. Earthquake insured loss database

Risk modelling firm EQECAT has released the third update to its five-peril range of insured loss databases and event libraries, with the release of version 2 of its U.S. Earthquake Insured Loss Database (ILD) version 2 and its Event Library for the U.S. Earthquake (USQuake^TM) Model.

EQECAT released updates to its U.S. hurricane and European windstorm insured loss databases back in October. Now that the U.S. earthquake update has been released we can expect to the see the Japan typhoon and Japan earthquake update released in the coming weeks.

The updated version of the U.S. Earthquake insured loss database includes losses presented in a Year Loss Table (YLT) format with a full-time domain representation of EQECAT’s view of the frequency and severity distribution of insurance industry losses from earthquake risk.

Licensees will be able to fully investigate EQECAT’s modeled view of risk, including tail risk present due to inherent uncertainties in natural catastrophe outcomes, without having to make assumptions on distributions or correlation or implementing sampling techniques to represent the range of outcomes considered within the model.

The update allows easy calculation of key risk metrics such as per occurrence (OEP) and annual aggregate loss exceedance (AEP) curves, average annual loss (AAL), and event-by-event losses (ELT). The database allows users to interrogate and analyse EQECAT’s modeled view of the distribution of potential industry wide losses by region and line of business (LOB) from earthquakes across the United States (excluding Hawaii and Alaska).

The Insured Loss Database can be used by insurers, reinsurers and catastrophe bond market participants to; analyse market share, quantify the insured market catastrophe loss potential by region and line of business, analyse basis risk, evaluate the basis risk between traded ILWs and region market loss, evaluate industry-loss warranties (ILW’s), assess EQECAT’s perspective of the natural catastrophe risk component in Industry Loss Warranties (ILWs), investigate aggregation of risk at the portfolio management level for investments in cat bonds and catastrophe risk and more.